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All Forum Posts by: Nick P.

Nick P. has started 3 posts and replied 6 times.

Post: Building a vacation home portfolio

Nick P.Posted
  • Posts 6
  • Votes 4

Hi all- Very new to the investing game and could really use some guidance. Long story short - my girlfriend and I are love to travel and love to reside in coastal cities. We currently live in the northeast and have contemplated a move to the south east for some time. However, we are unsure if/when that move will take place. We are currently renting a town home and would really like a place of our own. Ideally- the long term goal would be to own a handful of vacation homes to use for our own pleasure. We would rent them when we are not there, but the motive would be more for our vacation needs than to cash flow ( at least that is what we are currently thinking). 

1- Would you recommend buying a house in our current city (have looked at house hacking a duplex) even though we are unsure if we will continue to live here? Is there a particular time frame of when you would suggest not to buy (aside from the FHA loan requirements of 1 year, 2 years for cap gain purposes) ? For instance- if we are only going to stay for say two years, and bought a traditional SFH (no house hack) with the intent to turn into a LTR when we move- would you suggest not doing that due to short time lived in the property? If we didn't rent it out and just decided to sell- would that cause any unforeseen problems?

Edit: would it ever make sense to buy the vacation rental before you buy a primary residence? Use it as a short term rental and continue to rent until you save enough to buy a primary residence? 

Hoping someone has experienced the same thought patterns, heard of a similar situation and just hoping to get some dialogue on what makes sense/best path forward. Open to alternative thinking as well in the short term to get to where we ultimately want to be. Thank you in advance

Hi all- 

Brand new to real estate investing and going back and forth on doing a house hack or purchasing a STR for my first property. I was hoping to get a couple of helpful pointers for narrowing down the STR property search. Any key things to absolutely avoid/common mistakes or any things that I should absolutely want/typical contributors to success? Also- any insight to if condos or SFHs are more likely to succeed- or is it more dependent on other factors? For context, I'm looking for properties along the Florida east coast and the focus is on cash flow.

Any and all pointers are welcome- different perspectives/ideas are also much appreciated. Thanks!

Post: Building a Duplex vs. Purchasing

Nick P.Posted
  • Posts 6
  • Votes 4
Quote from @Ryan Thomson:

@Nick P. 

I wonder if your criteria may be a little unrealistic for the current market.

House hacking is tough to cashflow in year one (with current house price run-ups and interest rates) for a couple reasons:

1. You are living in one of the rentable units

2. You are only putting 5% down so your loan amount is much larger and therefore your mortgage payment.

I would consider your net worth ROI. What I mean by this is considering how much your down payment returns to your net worth (appreciation, loan paydown, tax benefits, AND rent avoidance). Don't forget to include rent avoidance in your numbers! You have to live somewhere.

You may need to lower your return or cashflow expectations so you can get into a house hack that will allow you to avoid throwing rent money away every month. You know this, but don't forget all the other ways real estate makes you money. Paying down your mortgage and owning an asset that will appreciate over the long term.


 Thank you for the response- I can see my criteria as being unrealistic. Can definitely look to expand and take a less ideal situation in the short term to set me up down the road!

Post: Building a Duplex vs. Purchasing

Nick P.Posted
  • Posts 6
  • Votes 4
Quote from @Andrew Postell:

@Nick P. thanks for the post here.  I began my real estate career house hacking.  It was so beneficial for me to do it and I am glad that it's how I got started.  

Now, you will find that building is SIGNIFICANTLY higher cost than purchasing a pre-existing home. If you think you have the scratch for it the first step will be to find a builder...but I think you will quickly see why most people don't go that route. I would bet that there aren't that many 2-4 unit properties in your area. And that is common in many areas. So broaden that search. Seek out single family homes with an ADU and if needed just use a single family home and rent out the rooms (that's what I did). Your commitment is to occupy the property for 12 months. So it doesn't have to be a perfect scenario. Maybe in 12 months the market is different and you can find something even better. 12 months will fly by.

Anyway, hope all of that helps.  Thanks!


Definitely helps, thank you Andrew. That's a great point about the ADU- during my search, I came across a property with a mother in law suite in the back and basically dismissed it initially. But thinking that could be a great option for a year to live there and rent out the main unit. Thank you again

Post: Building a Duplex vs. Purchasing

Nick P.Posted
  • Posts 6
  • Votes 4
Quote from @Dan Guenther:

@Nick P.

Congratulations on embarking on your real estate investing journey! It's great to see your enthusiasm and eagerness to hit the ground running. House hacking, particularly through a duplex, can be an excellent strategy for new investors.

Considering your work restrictions and personal preferences, it's understandable that you've narrowed down your search to specific cities/areas. However, you've found that the current properties for sale in those areas don't align with your investment criteria. This is a common challenge in real estate, and it's encouraging that you're exploring alternative options.

Vacant land zoned for multi-family development could be a viable choice, but it's essential to approach it with careful consideration. Here are a few factors to ponder before making a decision:

  1. Feasibility: Assess the feasibility of developing a multi-family property on the vacant land. Look into zoning regulations, permits, and any other legal requirements that may apply. Consult with professionals such as architects, contractors, and local authorities to understand the potential challenges and costs involved.
  2. Budget and Financing: Determine your budget for purchasing the land and developing the property. Consider whether you have sufficient funds or if you'll need financing. Securing loans for a first-time investor can be challenging, so explore your options and ensure you have a solid financial plan.
  3. Time and Effort: Developing a multi-family property from vacant land can be time-consuming and demanding. Are you prepared to invest the necessary time and effort into overseeing the project? Consider whether you have the expertise or willingness to manage contractors, navigate construction challenges, and handle any unexpected issues that may arise.
  4. Risk Tolerance: Assess your risk tolerance as a first-time investor. Developing a property from scratch carries more risks compared to purchasing an existing one. It's important to be realistic about the potential challenges and uncertainties involved, both financially and logistically.

While developing a multi-family property may seem daunting for a first-time investor, it's not necessarily out of reach. With thorough research, proper planning, and a team of professionals to support you, it can be a rewarding venture. However, if you find the project too complex or overwhelming, it may be worth considering alternative strategies, such as exploring other cities/areas with more suitable properties or seeking guidance from experienced investors or real estate mentors.

Remember, real estate investing is a continuous learning process. Engage with online communities, attend local real estate meetups, and network with experienced investors who can provide valuable insights and guidance based on their own experiences.

Best of luck with your decision and future real estate endeavors! Enjoy the learning journey ahead.

Reach out if you want to discuss some alternative options! 



 Thank you for the replay! Really great insight here- especially the time and effort and risk tolerance. If the build were to run into some trouble I wonder if my lack of experience could potentially hurt me. Will make sure to check back in here and update once I get something under contract!

Post: Building a Duplex vs. Purchasing

Nick P.Posted
  • Posts 6
  • Votes 4

Hi All,

I'm brand new to real estate investing, but looking to hit the ground running. I would like my first property to be a house hack, preferably a duplex. Due to work restrictions (I am required to live near a city where we have an office) and mixed with personal preference, there are a couple of cities/areas that I am interested in purchasing. However, after much research, not many properties currently for sale make sense for me in these areas. There is however vacant land, zoned for multi-family, for sale at a reasonable purchase price. I'm curious if anyone has experience here and would advocate either for or against this. Would this be too large of a project for a first time investor? Any thoughts/commentary is greatly appreciated. 

Thanks in advance and looking forward to learning here!